The difference between shares and bonds.
When a company is in need of raising cash for future projects the usually issue equities or as they are more commonly known shares, the company may also issue bonds or as they are known in this type of business `corporate bonds`. There are many differences between the two entities so I will endeavor to list a few here. One of the main points I can raise the differences between the two is that shares are permanent, once they are issued they will continue to exist as long as the company they are invested in carries on trading or until one of many other factors kick in such as bankruptcy. Equally investors have no set time limit within their equity/share holdings. Physical Market data is a very good way of learning more on Trading in general.
The Team at Junior Stocks have added more details below for Bonds.
Bonds though traditionally have a fixed life span which is always detailed on the paperwork you received when purchasing them. With bonds you will always know the amount of regular fixed income you will receive from them at set dates and also the date you will be repaid the full amount you have invested in them. Shares always pay dividends to investors with the amount nearly always fluctuating as the share price reaches its highs and lows over time. On occasion dividends can be missed by a company who is in financial trouble, this is not good for the investor or the company has unpaid dividends are an early sign that the company cannot meet its financial obligations.
Bonds pay interest which is known as coupons, this is called coupons as in the old days bonds would be received by the investor as small squares on a certificate which the investor would break off and hand in when it became time to collect their return payments. The interest on bonds is always fixed so even if a company is not doing as well as expected it will never affect the payment amounts you should be receiving as bond interest is always paid before any other type of payment such as share dividends. One advantage with shares is that they give the shareholder a say in the future plans of the company depending on how many they hold in the said company, shareholders who only hold a nominal amount of shares will rarely have any influence on the affair of the company. Shareholders in affect own the actual company they have invested in and during the annual general meeting will find themselves with the chance to grill the board about previous and future plans.